Why Forward Air Stock Soared Today

When an activist investor in a company starts making noise, the clatter can help move the stock higher. That was the news that moved Forward Air (NASDAQ: FWRD) stock on Monday. Intrigued by the possibility of a sale at a premium price, investors piled into Forward's stock and sent its value more than 6% skyward on the day. That made it a standout on a session where the S&P 500 index landed in the red with an almost 1% decline.That activist is a firm called Alta Fox which, as is typical of such enterprises, has a small (3%) shareholding. On Monday, Alta Fox sent a letter to Forward Air's board of directors calling for change at the company. Specifically, it is insisting on an outright sale of the business. Taking the adversarial tone common for activists, Alta Fox wrote that "We view your disastrous track record of ignoring shareholders' views as abhorrent. However, you have an opportunity now to do the right thing by listening to resounding investor feedback and executing a formal sales process that maximizes value for all shareholders."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool